TTC considers legal action against Bombardier over delayed streetcars

“Damages for maintenance and overhaul costs of the existing streetcar fleet; service and customer impact costs, such as supplementing streetcar routes with buses; and TTC staff time that has been expended on this matter will also be considered”, said the TTC.

Bombardier, in a statement, blamed the latest delay on issues with electrical connectors on two of the new streetcars now in production and said its given the TTC a revised delivery schedule.

But fed-up TTC CEO Andy Byford, who heard the news from Bombardier president Raymond Bachant on Thursday, said he will believe it when he sees it.

Given Bombardier’s failure to meet its past commitments, Colle said the TTC has no confidence in this latest schedule.

TTC officials say Bombardier told them only 16 streetcars will be delivered and on the streets by the end of 2015, instead of the 23 promised in July.

The TTC board will consider the new sanctions against Bombardier at an upcoming meeting. “We will consider all legal and financial actions at our disposal to address this situation”.

The original contract for 204 new streetcars, announced in 2009, is worth $851 million – the largest single order ever for light-rail vehicles.

“Bombardier regrets that its performance on this particular project has been disappointing to the Toronto Transit Commission and its riders and remains fully committed to continue to support its customer with proven solutions”, it said in a news release. Bombardier did not initially respond to requests for comment.

Colle said he’s “disappointed” Bombardier won’t meet its commitments “yet again”.

He added that the company is adding a third daily shift of workers at its Thunder Bay, Ont. plant where the streetcars are produced in an attempt to speed up production.

To correct the crimping issue, Bombardier has to effectively check 20,000 wires per vehicle. “Bombardier has been incapable of sticking to their production schedule so far”. The new streetcars that are in service today have performed exceedingly well; however, the TTC will not accept streetcars that do not pass its high standard of quality assurance, reliability and safety. Reuters reported Friday that the initial public offering, originally planned for this year, has been delayed until at least the second quarter of 2016.